Understanding India’s Cryptocurrency Crackdown

This month, the Reserve Bank of India (RBI), the country’s central bank, initiated a major crackdown on the purchase and trading of cryptocurrencies such as Bitcoin in India. At their bi-monthly monetary policy press conference on April 5th, RBI Deputy Governor B.P. Kanungo decreed that all RBI regulated bodies “are required to stop having business relationships with entities dealing with virtual currencies forthwith and unwind the existing relationships in a period of three months time.”

This means that come July, India’s banks and lenders will no longer be able to transact or facilitate transactions with companies or individuals that trade in cryptocurrencies.